hero criteria

Criteria

Please note this is only a summary of our key criteria, for full information please see our Lending guidelines and submission requirements.

1. Maximum LTV loan amount

Maximum LTV

Loan amount

Up to 75% LTV

£500,000

Up to 70% LTV

£1,000,000

Up to 65% LTV

£2,000,000

2. Maximum aggregate borrowing

Normal total mortgage exposure per borrower £5,000,000.

3. Income

Applicant(s) should have a minimum combined gross annual income of £25,000 per annum.

All income must be evidenced and can include:-

gross employment income

taxable self-employed income

income from state benefits, state pensions and investments will not be considered, but may be taken into account when calculating the tax band applicable to an applicant.

4. Affordability

The gross rental income from the property should equal or exceed the Interest Coverage Ratio as determined using a combination of the tax band applicable to an applicant’s income and the property type.

The tax band applicable to the applicant with the highest income will be used

For limited liability partnerships, the tax band appropriate to the applicant (member) with the highest income will be used

The tax band and ICR levels are as follows:-

Application type

Single self-contained properties

HMO's, Multi-Unit blocks and all other property types

Basic Rate Tax Payer (20%)

125%

130%

Limited company

125%

130%

Higher rate tax payers (40%)

140%

145%

Additional rate tax payers (45%)

140%

145%

To cater for the PRA affordability regulation, we’ve made some changes to our mortgage application system. We’ve kept the changes to a minimum, but we will now require a fully completed property schedule, business plan and cash flow forecast on all applications before we can carry out our underwriting assessment. We will also need to ask for more information about your customer’s income to enable us to apply the appropriate tax band and ICR to the affordability assessment.

The future affordability assessment will be based on our current understanding of interest rates going forward and rental inflation. We must be satisfied that the applicant(s) are able to withstand increases in mortgage interest rates, cover rental voids and be able to afford the mortgage now and after any fixed/discounted period expires.

5. Minimum loan amount

£30,000

6. Age

Minimum - 21 at application

Maximum - 80 at end of mortgage term

7. Property

Minimum property valuation - £75,000

Properties divided into a maximum of 20 units are considered on an individual basis. HMO's will be considered.

Part commercial properties considered where there is a commercial element not exceeding 40% of total floor space.

For multi-unit properties, HMO's and part commercial properties, landlords must have a minimum of three years lettings experience.

Please see our Lending guidelines and submission requirements for the minimum valuations that apply to multi-unit properties, HMO's and part commercial properties

8. Limited companies and limited liability partnerships (LLPs)

Applications will be considered from limited companies and LLPs.

Additional security in the form of a floating charge will be required.

9. Consumer buy-to-let

We will not consider applications that qualify as consumer buy-to-let mortgage contracts. Consumer buy-to-let applications are available through www.mortgagetrust.co.uk

10. Solicitors

We will normally instruct the applicant’s solicitors to act provided that the firm is registered on Lender Exchange, has agreed to our terms and conditions and has been accepted onto our conveyancing panel. Please see our conveyancing panel on our website for a full list of approved firms.

Alternatively, please contact New Business Enquiries 0345 849 4040 if you require any further information.